The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1887-04-21
THE INTERSTATE COMMERCE
LAW.
Able Resume of the Scope of the
Influence of the Long and
Short Haul Law.

AU10 4LSo1Lu0 Vi JlO SSSPO VI UAS
Influence of the Long and
Short Haul Law.
From the Chicago Inter Ocean.
New YORK, April GA gentlemen well
known throughout the country for his in
clination to patient and exhaustive re-
search, and familiarity with socio-econom.
ic questions, was induced to give his opin-
ion on the operation and consequences OF
the interstate commerce act, for the ben
eft of the readers of the Inter-Ocean.
After some congratulations the conclu-
siOns drawn are as follows:
First-Decided increase in the aggre-
gate amount paid for the transportation
of freight-that is, an increase of the av-
erage rate per ton per mile.
Second-As this will result chiefly from
enhancement of rates upon through
freight, it will naturally reduce the profits
of the producer for distant market, I'M
less there is a corresponding increase in
price.
Third-A still more marked enhance
ment of the aggregate amount received
from passenger traffic. 1t is probable
that combinations which are open to the
public-such as 1000-mile tickets and sea-
son rates between specific points-will re-
main. They are certainly in the interest
of the roads, and are not prohibited by
the act. The drain of the pass and favor
system, however, is removed. 1t is esti-
mated that not less than 100000 of peo-
pie, outside of the exempted classes habit
ually
TRAVEL ON PASSES
or at reduced rates. These are among
the most migratory classes of the popula-
ton, and frequently the best able to pay
Fourth-No very decided change OF
passenger rates need be expected. If any,
thing, through rates will probably be
somewhat increased, and local rates ad
justed rather than enhanced.
Fifth-Competition between trunk lines
on both freight and passenger traffic, will
be greatly reduced, if not entirely re-
moved. While the act prohibits pooling
it thus serves itself one of the main pur
poses of a spool" IA
Sixth-The business of express and for
warding companies will be greatly anc
rapidly reduced.
| Seventh-The manufacturer or producer
whose market is near at hand, while he may
not experience any positive reduction OF
his freight rates, will be benefited by the
added burden placed on his remove com
petitors.
| AS consequence of these Immediate eff
fects the following more remote or rather
indirect results may be noted:
First-The prices of all articles depen
dent mainly on distant. market will be
enhanced to the consumer and reduced to
the producer. The grower of agricul-
tural staples at the west, and the manu-
facture of heavy wares at the east will
both suffer some reduction of profits,
while the prices to consumers will at the
same time be somewhat enhanced.
| Second-As consequence, unless there
should be an unusual foreign demand
arising within twelvemonth, the influ-
ence of the act will be especially detrimen-
tai to the western grower of agricultural
staples.
Third-The eastern manufacturer OF
heavy wares who is dependent mainly upon
the west and south for his market, will
perhaps be the greatest immediate suf-
ferer. Wherever there is local competi-
ton he will find himself excluded, and
many who have been running close to the
wind in hope of better times will be forced
| to succumb.
Fourth--This sudden and radical change
in the conditions affecting business will
crush out many weak and struggling es-
Establishments in all branches of trade.
Fifth-On the other hand, it will not
seriously affect such great combinations
as the Anthracite Coal syndicate, the
Standard Oil company and other similar
pools" which, in effect,
CONTROL THF sTPPLY
of specific product. 1t will, perhaps,
reduce somewhat the consumption of an
thracite in the west, though that is not
certain, since it may be doubted if the
law will be construed SO as to put hard
and soft coal on par as to rate, and if it
is not, there is no reason why the anthra-
cite rate from the east should not con-
tinue as favorable as at the present time.
The control of the bulk of the products
in which they deal, will still enable such
combinations to suppress injurious COM
petition.
For time, therefore, the influence of
the act will be to produce still further
concentration in business by reducing the
number of competitors in tht various
lines of trade and manufacture. Should
the act continue in force, these influences
will be largely counterbalanced, and, in
time, no doubt, more than overcome by
others of very different character.
Among these resultant effects may be es-
pecially noted the following:
First-The encouragement of local
manufacturing establishments. This will
greatly stimulate southern and western
manufactures and, in corresponding de-
gree depress eastern mechanical industries
and induce a consequent western move
ment of population. While specific west
ern interests will at first suffer, the west,
as whole, will no doubt gain essentially
by the Investigation of her industries.
Alphabetically, the east will gain some ad-
vantage by a reduction of western compe-
tition, but it will by no means counter
balance its loss i'll manufactures.
Second--The double and sometimes treble
transportation of product a2d material
over the same route will be rapidly re-